Danner Inc has a $395,000 capital loss carryover that will expire at the end of the current tax year if it is not used Also, Danner Inc has been a general partner in the Talisman Partnership for three years and plans to end its involvement with the partnership by receiving a liquidating distributio...

a Because Danner Incs actual cash distribution of 50000 and deemed cash distribution of 100000 from ...

Danner Inc. has a $395,000 capital loss carryover that will expire at the end of the current

Question:

Danner Inc. has a $395,000 capital loss carryover that will expire at the end of the current tax year if it is not used. Also, Danner Inc. has been a general partner in the Talisman for three years and plans to end its involvement with the by receiving a liquidating Initially, all parties agreed that Danner Inc.'s liquidating would include $50,000 in cash and land with a fair market value of $400,000 (tax basis of $120,000). Immediately before the Danner's basis in its interest is $150,000 which includes its $100,000 share of debt. The Talisman does not hold any hot assets.
a. What is the amount and character of any gain or loss to Danner Inc.?
b. What is Danner Inc.'s basis in the land?
c. Can you suggest a course of action that would help Danner Inc. to avoid the expiration of its capital loss carryover?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...